How to do create a home network using two computer?

iam having two computers one is pc & one is laptop.
both of them having the following configurations:-

for both the systems:-

os-windows xp
ram - 256mb
harddisk-40 gb
LAN card -ethernet 10/100

now pls tell me each n every steps to create myself a home network with minimum expenditure.??????/

pls answer to me the following questions:-

ques1. is it neccessary to use a hub now also to connect only two systems???????

ques2. can i directly link both the systems directly on their lan cards using a cable like telephone cable? is it possible to do using telephone cables?

ques3. if telephone cable is not good ,then which cable should i use?

ques4. iam also having a 60meter long cable which my cable operator had used to provide my internet connection from Sify which he plugged into my lan card using a RJ45 plug,,,,but now iam not using internet from my cable operator.the cable is still having with me .
can i use that cable to connect my system??????

1. no. You can use a cross over cable to connect the two directly. do a google search on cross over cables and read up.

2. no. You must use catagory 5 data cable and follow the proper standards for termination. You can buy pre made cables at most office and hardware stores.

3. see answer 2

4. yes you can use it if it is catagory 5 and cross over configured. If it is not cross over configured you will have to get a network switch and another cable.

If you want to just network them together you can use a CAT5 crossover ethernet cable (google it) if you want to connect them to the internet you will want to purchase a router (i use linksys, you can get them at wal-mart)
this acts as a firewall and as a bridge so you can split your internet connection...it sounds like you have cable internet, so you should also have a cable modem. for the router, a wireless one is the easiest if the two computers are far apart, and if you don't want a cable hanging around...a phone cord will not work. Instructions for installing a wireless router are in the box. for the one i mentioned it's about $50 at wal-mart

Question 1 Answer: No, see answer to Q3 below.

Question 2 Answer: No the connections for ethernet and phone jacks are completely different.

Question 3 Answer: There are two special cables you can use. You could use a special USB cable to transfer files, if that is what you want to do with this network you want to set up. Or if you want to use your ethernet card, which it sounds like, you could use an etjernet crossover cable. This special cables will allow you to connect them together without the hub.

Question 4 Answer: No.It would be ok for connectiong to a hub, but not for connecting the two PCs. See answer for Q3 for more.